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  • 2022-06-09
    For what kind of preferences will the consumer be just as well-off facing a quantity tax as an income tax?
    A: Qusilinear utility function
    B: Cobb-Douglas utility function
    C: perfect substitutes
    D: perfect complements
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    • The equivalent variation in income from a tax is the amount of extra income that a consumer would need in order to be as well off after the tax is imposed as he was originally.
    • The utility function curve is convexed upwards, indicating that as<br/>the consumption of a certain commodity increases ( ) A: Increased marginal utility B: Increase in total utility C: Diminishing marginal utility D: Increase in average utility
    • Please use the utility function to explain what is risk aversion, risk preference and risk neutrality.
    • If a cup of coffee(c) and a cup of tea(t) always provide the same utility for Anne, her utility function could be written as U=min{t, c}.
    • Which of the following situations is/are possible? A: An enterprise pays a lot of income tax and very little value-added tax B: An enterprise pays a lot of income tax and a lot of value-added tax C: An enterprise pays very little income tax and a lot of value-added tax D: An enterprise pays very little income tax and very little value-added tax

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